Sanyo Broke Away From Panasonic's Deal

Deal going between Panasonic and Sanyo Electric broke off abruptly this week, when Sanyo shareholder Goldman Sachs walked out of negotiations, according to media reports from Tokyo. It is said that two sides are far apart in the prices they were offering for a deal.

The negotiations was under the shadow of disagreement, but i was clear that Panasonic was offering far less pricing than the Sanyo shareholders were expecting to get through deal. Even so, an acquisition is expected to be accomplished at more than $8 billion and possibly much more based on the reports that were flowing circularly around negotiation for months.

"We're no longer in talks with Panasonic on Sanyo," a Goldman Sachs spokeswoman told The Wall Street Journal. Goldman, along with Daiwa Securities SMBC and Sumitomo Mitsui Banking Co., reportedly controls about 70% of Sanyo.

If this deal get green chit, the Panasonic-Sanyo company could rival Japan's current largest corporate, Hitachi, which currently have some $110 billion in annual sales. For Panasonic deals means a lot because Sanyo has an long history of producing outstanding product in field of advance battery technology and solar energy product, and by undertaking Sanyo, Panasonic can get a good hold over energy market.
It is all to be noted that Sanyo is suffering from a financially crises and was forced to sell off some of its business units.

Earlier this year, Goldman pressured Sanyo's founding family to sell the company's interest in its mobile unit and deal was ready to carried out for a $375 million sales price to Kyocera. This act of contracting made Kyocera into the No. 4 mobile phone position in Japan.
Preliminary negotiations between Panasonic and Sanyo established that the strong Sanyo brand would live on in any acquisition.


sagar said...

Really awesome blog. I enjoyed reading review of cool gadget , techno tips etc. I found that you really update
your site regularly that made me more interesting. I've bookmarked your site for my future use.
Thank you
sagar rai
Cool Gagdet Zone ReviewTechz
Orkut Free Themes

Free CSS templates

Makeup Tutorial said...

Panasonic booms in the electronics market with its products...

Post a Comment